Pharma StoCks valuation are still very high and so they have to correct to more realistic prices or will have to correct time wise so the valuation can catch....and makes more sense price wise and valuation wise.... like in Sun Pharma....the fy 18//19 EPS is projected around @16:50 and fy 19/20 EPS is projected to be around @19.... considering the additional income from Halol plant.... even in fy19/20 if the StoCK is given a multiple of PE20.... The sun pharma stock should hover somewhere around 380....400....
And note nothing extraordinary is going to happen in Pharma sector in coming 3 years atleast... and the way these business tv channels are talking about Pharma sector makes things confirm that one more fall price wise is left or the price will be range bound for the next 2/3 years atleast till the time the business tv channel people stop talking about Pharma sector totally leaving few genuine fund managers like S Naren ICICI AMC...to talk about the Pharma sector....still the retail investors are not tired of investing in Pharma StoCks....the day these last lot of investors are massacred the bottom will not be in place.....
And note nothing extraordinary is going to happen in Pharma sector in coming 3 years atleast... and the way these business tv channels are talking about Pharma sector makes things confirm that one more fall price wise is left or the price will be range bound for the next 2/3 years atleast till the time the business tv channel people stop talking about Pharma sector totally leaving few genuine fund managers like S Naren ICICI AMC...to talk about the Pharma sector....still the retail investors are not tired of investing in Pharma StoCks....the day these last lot of investors are massacred the bottom will not be in place.....
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